Question 4 The following table shows the demand schedule for video games. Price Quantity Demanded TE...

Question 4

The following table shows the demand schedule for video games.

	Price	Quantity Demanded	TE = (P)(Q)
A	30	400,000	12000000
B	35	380,000	13300000
C	40	350,000	14000000
D	45	320,000	14400000
E	50	300,000	15000000
F	55	260,000	14300000
G	60	230,000	13800000
H	65	190,000	12350000

4.2 Compute the price elasticities of demand between points A and B, B and C, c and D, and so on.

4.3 Over what range of prices is the demand for video games elastic? Explain.

4.4 Over what range of prices is the demand for video games inelastic? Explain.

Expert Solution

Rahul Sunny answered 9 months ago

1. The following table shows the demand schedule for video games. Price (per unit) Quantity Demanded...

1. The following table shows the demand schedule for video games. Price (per unit) Quantity Demanded (per year) Total Expenditure A $30 400 000 B 35 380 000 C 40 350 000 D 45 320 000 E 50 300 000 F 55 260 000 G 60 230 000 H 65 190 000 a. Compute the total expenditure for each row in the table. b. Compute the price elasticities of demand between A and B, C and D, E and F,...

The following table shows a money demand schedule, which is the quantity of money demanded at...

The following table shows a money demand schedule, which is the quantity of money demanded at various price levels (P). Fill in the Value of Money column in the following table. Price Level (P) Value of Money (1/P) Quantity of Money Demanded (Billions of dollars) 0.80 2.0 1.00 2.5 1.33 4.0 2.00 8.0 Now consider the relationship between the price level and the quantity of money that people demand. The higher the price level, the money the typical transaction requires,...

The Following table shows the demand and supply schedule for pineapple fruits Quantity Demand kg price($)...

The Following table shows the demand and supply schedule for pineapple fruits Quantity Demand kg price($) Quantity Supplied in kg 26 5 4 23 10 9 18 15 14 14 20 18 9 25 23 4 30 26 a. Plot the supply and demand curves. b. Identify the equilibrium price and quantity c. What will happen if government passed a law that no seller should sell bellow a price of $25. d. Explain the market situation at a price of 5. e. If quantity...

12. Consider the following table which shows the demand and supply of ice-cream. Price Quantity demanded...

12. Consider the following table which shows the demand and supply of ice-cream. Price Quantity demanded Quantity supplied $2.5 75,000 45,000 $3.5 70,000 50,000 $4.5 65,000 55,000 $5.5 60,000 60,000 $6.5 55,000 65,000 (a) What are the equilibrium price and equilibrium quantity? (b) Suppose quantity supplied increases by 20,000 for every price level. Determine the new equilibrium price and new equilibrium quantity. (c) This summer is unusually hot. How will this affect the supply or demand for ice-cream? Will the...

The market for apple pies is competitive and has the following demand schedule: Price Quantity Demanded...

The market for apple pies is competitive and has the following demand schedule: Price Quantity Demanded $7 600 8 500 9 400 10 300 11 200 12 100 13 0 Q TFC MC TC ATC 1 $9 $2 2 9 4 3 9 6 4 9 8 5 9 10 6 9 12 a. When P = $11, how many pies does each producer make? [Hint: Find MR. Use the profit maximization rule: MR = MC. Firms never choose the...

The following table shows the market for cranberries: Price (kgs) Quantity demanded (kgs) TR Quantity supplied...

The following table shows the market for cranberries: Price (kgs) Quantity demanded (kgs) TR Quantity supplied (kgs) $ 10 0 40 $ 8 10 30 $ 6 20 20 $ 4 30 10 $ 2 40 0 a. (2) Determine the price elasticity of demand for cranberries as the price changes from $8 to $6. Use the midpoint formula. Is demand elastic or inelastic? b. (2) Which price range maximizes total revenue for sellers? What is the price elasticity of demand...

Chapter 5 (#4) Consider the following demand schedule: Price Quantity Demanded Elasticity Coefficient $25 20 -3...

Chapter 5 (#4) Consider the following demand schedule: Price Quantity Demanded Elasticity Coefficient $25 20 -3 20 40 -1.4 15 60 -0.714 10 80 -0.33 5 100 What is the price elasticity of demand between? See attached P = $25 and P = $20? P= $20 and P = $15? P = $15 and P = $10? P = $10 and P = $5?

4. Using the following demand and supply schedules: Price Quantity Supplied Quantity Demanded $4 &n

4. Using the following demand and supply schedules: Price Quantity Supplied Quantity Demanded $4 50 200 $5 65 140 $6 85 85 $7 110 50 $8 140 20 a. Plot the supply and demand curves in a graph. Indicate the point of equilibrium on the graph. b. If the government imposed a price ceiling of $5 for this product, what would be the impact in this market? Explain. c. if the government imposed a price floor of $5 for...

The market for pizza has the following demand and supply schedule (5 Marks) Price Quantity Demanded...

The market for pizza has the following demand and supply schedule Price Quantity Demanded Quantity Supplied $4 135 26 $5 104 53 $6 81 81 $7 68 98 $8 53 110 $9 39 121 What is the equilibrium price and quantity in this market? If the actual price in this market is above the equilibrium price what would drive the market towards the equilibrium? If the actual price in this market is below the equilibrium price what would drive the...

Q1. The following table shows the quantity supplied and quantity demanded of a commodity at certain...

Q1. The following table shows the quantity supplied and quantity demanded of a commodity at certain unit prices. Unit Price $1.50 1150 340 Quantity Demanded $2.75 712.5 652.5 Quantity Supplied $3.25 537.5 777.5 a. From the information given in the table above, describe in your own words, how would you go about showing that the quantity demanded and supplied are linear functions of price, without having to plot a graph. b. By demonstrating what you have describe above, show that...

Question